Analysis: How Far? Industry contemplates ancillary revenue limits

Generating ancillary revenue is now an entrenched component of the global airline business, likely enabling carriers to avoid steep losses even as the economy sputters. The question the industry is now asking itself: How far can we go? Is there a limit at which consumer backlash against a particular fee, or a range of fees, outweighs the benefits of unbundled pricing?

Ft. Lauderdale, Fla.-based Spirit Airlines, among the most aggressive carriers in generating ancillary revenue, is now adding a boarding pass fee for passengers who don’t print their own. “If customers are willing to behave in a way that will save us money, we’ll save them money,” Spirit president and CEO Ben Baldanza told ATW. “A large percentage of customers buy their tickets online from us, but not a lot of them check in online . . . So what ...